Outsourcing Offshore At Darden
Cover Page
Objectives and Scope
This group activity aims to discuss outsourcing implications for a company like Darden Restaurants and its implications to the business particularly in supply chain. Specifically, this will answer the following questions:
1. What are some outsourcing opportunities in a restaurant?
2. What supply-chain issues are unique to a firm sourcing from 35 countries?
3. Examine how other firms or industries develop international supply chains as compared to Darden
4. Why does Darden outsource harvesting and preparation of much of its seafood?
Analyses and discussions
1. What are some outsourcing opportunities in a restaurant?
In a restaurant, internal activities that can be considered as outsourcing opportunities are the following: First, janitorial, maintenance, and security services of the restaurant can be outsourced. The cleaning, maintaining and repairing, securing of the restaurant furniture, fixtures, signage, etc. may be outsourced. Second, laundry services of table cloths and napkins may also be sourced from outside parties. Third, as in the case of Darden, the labor activities which involve the food supply preparation and distribution can also be outsourced. The cleaning and testing of plants, fruits, fish, as the case may be can be done by outside parties so that the food product is already ready for cooking when it reaches the company’s warehouses. Fourth, activities such as data processing and booking could also be outsourced where labor is cheaper. Lastly, marketing and promotional activities like the preparation of menus, decoration of restaurants, and creation of in-store and online advertisements can be outsourced to an ad agency which has more expertise when it comes to marketing.
2. What supply chain issues are unique to a firm sourcing from 35 countries?
A firm which sources from 35 countries will encounter unique supply chain issues such as the following: One unique issue is learning how to communicate properly the
Objectives and Scope
This group activity aims to discuss outsourcing implications for a company like Darden Restaurants and its implications to the business particularly in supply chain. Specifically, this will answer the following questions:
1. What are some outsourcing opportunities in a restaurant?
2. What supply-chain issues are unique to a firm sourcing from 35 countries?
3. Examine how other firms or industries develop international supply chains as compared to Darden
4. Why does Darden outsource harvesting and preparation of much of its seafood?
Analyses and discussions
1. What are some outsourcing opportunities in a restaurant?
In a restaurant, internal activities that can be considered as outsourcing opportunities are the following: First, janitorial, maintenance, and security services of the restaurant can be outsourced. The cleaning, maintaining and repairing, securing of the restaurant furniture, fixtures, signage, etc. may be outsourced. Second, laundry services of table cloths and napkins may also be sourced from outside parties. Third, as in the case of Darden, the labor activities which involve the food supply preparation and distribution can also be outsourced. The cleaning and testing of plants, fruits, fish, as the case may be can be done by outside parties so that the food product is already ready for cooking when it reaches the company’s warehouses. Fourth, activities such as data processing and booking could also be outsourced where labor is cheaper. Lastly, marketing and promotional activities like the preparation of menus, decoration of restaurants, and creation of in-store and online advertisements can be outsourced to an ad agency which has more expertise when it comes to marketing.
2. What supply chain issues are unique to a firm sourcing from 35 countries?
A firm which sources from 35 countries will encounter unique supply chain issues such as the following: One unique issue is learning how to communicate properly the